China's iPhone Ban for Government Workers Could Have Negligible Impact on Apple
InvestopediaSep 07, 2023
Apple shares have fallen by over 6% since Wednesday following reports that the PRC has prohibited government employees from using iPhones.
The technology giant has consequently lost nearly $200B in stock market valuation. Apple reportedly sells about 50M iPhones in China annually, and the ban could bring it to 5-10M units annually.
The PRC's ban on iPhones will likely have little impact on the tens of millions of smartphones expected to be sold in China next year. Private sector demand will more than make up for the public sector restriction as Apple is ready to unveil its newest models — the iPhone 15 and iPhone 15 Pro — next week.
Apple is finding itself in a tricky situation as China continues to encourage domestic technology manufacturers' growth and reduce foreign companies' influence amid heightened Beijing-Washington tensions. The ban reflects Apple's vulnerability in the Chinese market.
There's an 18% chance that China's GDP will overtake the US before 2030, according to the Metaculus prediction community.